Until the demonetisation drive was implemented, cash was favoured over digital money or plastic currency in India. However, now people realise that they need to use their debit cards, credit cards, net banking, and mobile apps to carry out their day-to-day transactions instead of relying solely on cash. One of the reasons why many people, especially youngsters, prefer online funds transfer is because it is fast and secure.
Customers can choose different options for instant money transfer such as:
- NEFT
- RTGS
- IMPS
- UPI-enabled Mobile Apps
Before online banking facilities were available to people, they had to visit the bank to complete the transaction. It was a time-consuming experience since the customers had to go to the bank, fill in the required forms, and stand in long queues to transfer money. Now, they can login to their bank account online and transfer money at a moment’s notice using any one of the services mentioned above.
It is important to remember that you will need to be registered for net banking and/or mobile banking for the bank account you plan to use for instant money transfer since you will use those credentials to login to your bank account and transfer money. Even if you do not have net banking or mobile banking, apply for it now since it is a fairly simple process. The best part is that banks issue these for free.
The instant money transfer services have been discussed in detail here:
NEFT: National Electronic Funds Transfer (NEFT) service is provided by most banks. The customers can use this facility to transfer money from their bank account to their own bank account in another bank or to a beneficiary holding a bank account in the same bank or another. Customers can avail the NEFT service on their bank’s desktop website, mobile website or mobile app.
NEFT transactions can only be carried out during the business hours of the bank. If the customer initiates the transaction on a weekend, bank holiday, or after business hours, the transaction is completed on the next business day when the bank opens.
Banks levy nominal charges to provide the NEFT facility. Here are the NEFT charges collected by most banks for each transaction.
| Transaction Amount | NEFT Charges (Excluding GST) |
| Up to Rs 10,000 | Rs 2.50 |
| Rs 10,000 – Rs 1 lakh | Rs 5 |
| Rs 1 lakh – Rs 2 lakh | Rs 15 |
| Above Rs 2 lakh | Rs 25 |
RTGS: Real-Time Gross Settlement (RTGS) service is provided by most banks in India. Customers can use the RTGS facility carry out large value transactions and transfer money from their bank account to their own bank account in another bank or to a beneficiary holding a bank account in the same bank or another. Most banks have set the minimum RTGS transaction limit to Rs 2 lakh.
Customers can avail the RTGS service on their bank’s desktop website, mobile website or mobile app. RTGS transactions are carried out as soon as the instructions are received by the bank. Therefore, RTGS transactions can only be carried out during the business hours of the bank. If the customer initiates the transaction when the bank is closed, the transaction is completed on the next business day after 8 AM.
The main difference between NEFT and RTGS is that for a NEFT transaction, the bank completes the transaction in batches while the bank carries out an RTGS transaction individually. If you initiate a NEFT transaction, it can take up to an hour for the transaction to complete based on the batch in which the transaction will be processed whereas an RTGS transaction is completed as soon as the bank receives the transaction request and details.
Banks levy nominal charges to provide the RTGS facility. Here are the transaction charges collected by most banks for each RTGS transaction.
| Transaction Amount | RTGS Charges (Excluding GST) |
| Rs 2 lakh – Rs 5 lakh | Rs 25 |
| Rs 5 lakh – Rs 10 lakh | Rs 50 |
IMPS: Immediate Payment Service (IMPS) was introduced in 2010 to make sure that customers did not have to wait for the bank to open to transfer smaller transactions. Most public sector, private sector, and Regional Rural banks provide IMPS facility to their customers.
The account holders can send money instantly using IMPS even if the bank is closed. This is one of the biggest advantages of availing IMPS since the customers can initiate and complete the transactions on weekends, other bank holidays, and after business hours of the bank.
The sender must have the receiver added as a beneficiary in their profiles to complete the IMPS transaction instantly. Otherwise, they first have to add the receiver as a beneficiary and then once the beneficiary is approved, usually within 4 hours, they can transfer money up to Rs 2 lakh instantly.
Banks levy transaction charges each time the customers initiate an IMPS transaction. The IMPS charges levied by most banks have been listed here:
| Transaction Amount | IMPS Charges (Excluding GST) |
| Up to Rs 10,000 | Rs 2.50 |
| Rs 10,000 – Rs 1 lakh | Rs 5 |
| Rs 1 lakh – Rs 2 lakh | Rs 15 |
IMPS is one of the main options that can boast of instant money transfer. The money is debited from the sender’s account to the beneficiary’s account instantly. All other options also offer fast money transfer but the actual time when the money will be transferred to the beneficiary’s account may vary.
UPI: Unified Payments Interface (UPI) is a smartphone-enabled technology for funds transfer using a unique UPI Id. The customers can register for UPI using their bank’s mobile banking website or app. They will receive a unique UPI Id mapped to their bank account. With this UPI Id, they can send or receive money without divulging their bank details such as account number, IFS Code, etc. It is important to note here that a customer that uses a UPI Id can send money to a receiver that does not have a UPI Id by using Account number + IFS Code, MMID or Aadhaar Number.
Currently, the UPI facility is free of cost which means the customers can avail the security offered by a UPI Id without any charges.